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Business Process Management

In order to remain competitive in today’s market, organizations are seeking ways to increase efficiency and successfully execute business processes, while containing costs.  Business Managers look for ways to streamline business processes and adapt them quickly in line with changing customer needs.  Therefore, business processes must be aligned with enterprise systems to ensure agility by leveraging Business Process Management.

Business Process Management (BPM) is a management approach focused on aligning all aspects of an organization with the needs and wants of clients.  It is a holistic approach that promotes business effectiveness and efficiency while striving for innovation, flexibility and integration with technology.  The goal of BPM is to improve visibility into a company’s overall performance.

The BPM Life-Cycle

File:Business Process Management Life-Cycle.svgProcess Design encompasses both the identification of existing processes and the design of “To Be” processes. 

Process Modeling takes the theoretical design and introduces combinations of variables, such as changes in rent, or material costs) which determine how the process might operate under different circumstances.  It involves running a “What If” analysis of the process.  For example, What if I have 75% of the resources to do the same work?

Process Execution  (The Key to Success!) - Contrary to conventional wisdom, the key to good execution is not detailed planning and control, but coordinating execution priorities across the organization.  Execution Management brings order to the organization through alignment of all of its departments, and subordinating individual priorities of the departments to the single highest priority of the entire organization.

Monitoring encompasses the tracking of individual processes, so that information on their state can be easily seen, and statistics on the performance of one or more of the processes can be provided, (example:  Determining the state of a customer order) so that the problems in its operation can be identified and corrected. 

Optimization includes retrieving process performance information from modeling or monitoring phase, identifying potential or actual bottlenecks and the potential opportunities for cost savings or other improvements, and then applying those enhancements in the design of the process, creating greater business value.

Main Sail leverages experience and knowledge across a variety of technical capabilities to develop “world class” BPM platforms.  We unify capabilities throughout your organization that are critical to building business process automation and process optimization capabilities into the enterprise.  We have experts in areas from strategy, business process design, change management, Solution and Enterprise Architecture, technical integration and COTS evaluation.

Main Sail's Business Process Management Approach

Process Optimization - Optimization ensures the process is running as smoothly as possible.  It can eliminate waste, reduce variability, improve delivery, assure compliance with regulations and reduce customer order delivery lead time.

There are many tools available to optimize or re-engineer a business system or process.  Any of the available tools support three questions that must be addressed for a successful optimization project:

  • WHAT TO CHANGE

  • WHAT TO CHANGE TO

  • HOW TO MAKE THE CHANGE

In a typical business process analysis, a Main Sail consultant utilizes the Theory of Constraints (TOC) process to identify the bottlenecks and chokepoints that are impeding organizational process flow. Once the bottlenecks are removed, Lean can be used to map the value stream and identify any non value added activities to remove from the process flow. Finally when we have a smooth running machine it makes sense to invest in Six Sigma statistical methodologies to further refine the organizational processes for efficiency and as a sustainment program.

Organizational Alignment is the practice of aligning an organization’s strategy and culture. In other words, organizational alignment helps to ensure that ‘what gets done’ is in line with ‘how things get done’ and vice versa. The ‘how’ covers the values, behaviors and processes for getting things done. Organizational Alignment ensures the goals and plans of the organization are tied into the needs of its employees.

Technology Alignment and Insertion enables a company’s information technology projects to align with an organization’s tactical operating objectives and business strategyTechnology Insertion is planning how to preserve the capability of a system over its life cycle by keeping the current technology employed up-to-date to avoid obsolescence and sustainment problems, and to take advantage of new technologies to obtain greater efficiencies and cost savings.

Performance Monitoring - Developing metrics is not as easy as ABC... people often rush resulting in bad metrics (that is metrics for which one can’t collect accurate data) or they create too many metrics (which dilutes focus).  The biggest problem by far is the sub-optimization of measuring metrics for the individual department, i.e. metrics that don’t measure what the entire organization’s goals are.

We will work with executives and management staff to analyze existing metrics to determine which will provide meaningful performance monitoring of the business based on the Process Optimization, Organizational Alignment, and Technology Alignment and Insertion discussed above, to identify opportunities for improvement or development of new metrics. We will construct performance metrics to encourage continuous performance improvement, effectiveness, efficiency, and appropriate levels of internal controls.

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Last modified: 02/15/10

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